Functionalities of SpartaDex

Swaps

SpartaDex delivers core DEX functionalities through its user-friendly market building. Users can perform token swaps akin to traditional decentralized exchanges, with a fee of 0.3% per transaction, as well as being able to contribute liquidity to any DEX pair available on the platform. SpartaDex provides incentives for liquidity provision by rewarding users with transaction fees generated from their assets.

LP - Liquidity Provision

Liquidity is typically provided in both pair tokens at a 50/50 ratio. These can then be staked to earn rewards on specific pairs. To advance in the game, you need to add at least 100 USD in liquidity, and the speed of your progress also hinges on the value of the liquidity you provide.

The claim for rewards from liquidity provision takes place at the ‘Senate’. The fee for this transaction is fixed and equal to 0.0005 ETH.

Fees from claiming are divided into 3 equal parts:

• ⅓ are burned
• ⅓ go to SPARTA stakers - Real Yield
• ⅓ are for SpartaDex - development and team

SpartaDex has also implemented a mechanism known as the 'Surrender Tax' for users intending to withdraw their liquidity from the pool. This mechanism imposes a cooldown period or a higher tax that goes back into the pool, permanently enhancing the liquidity of a particular project.

Surrender Tax values:

• Instant LP withdrawal - 8% fee
• 7-day cooldown - 5% fee
• 14-day cooldown - 2% fee
• 30-day cooldown - 0% fee

LP Staking

An important part of SpartaDex's architecture is its Ecosystem Rewards Pool. This feature plays a pivotal role in SpartaDex's tokenomics, offering rewards to liquidity providers. The community-oriented project recognizes and encourages liquidity providers in whitelisted pools by giving rewards not only in SPARTA, but also in tokens from other promising partner projects.

Staking LP tokens in SpartaDex enables users to earn inflation rewards in SPARTA (ecosystem rewards) and, in some LPs, rewards in tokens from another project (dual rewards).

The inflationary rewards in SPARTA tokens are split after claiming, with 25% directly going to the user's wallet and the remaining 75% automatically locked in single asset staking. 100% of claims in tokens from another project (dual rewards) are allocated to the user’s wallet, without any lock.

SPARTA Staking

The native SPARTA token offers stakeholders the opportunity to earn real yield from the exchange's diverse income sources, including swap fees and micropayments.

Staking SPARTA can be done voluntarily, or automatically when users receive inflation-based rewards. However, unstaking comes with a cooldown mechanism. A rapid 10-day unstake incurs a large 50% fee, while waiting for 110 days allows for fee-free unstaking. Each day past the initial 10 reduces the fee by 0.5%, offering users an adjustable path towards liquidity.

Buying Gems - Micropayments

In SpartaDex, the premium currency, known as Gems, can be purchased with SPARTA tokens. These Gems can be used for a variety of purposes, including facilitating and accelerating the growth and expansion of Polis, the town where the game takes place.

Players make payments in SPARTA tokens, which are distributed as follows:

• ⅓ are burned
• ⅓ go to SPARTA stakers - Real Yield
• ⅓ are for SpartaDex - development and team

The protocol has a unique profit-sharing model through which the SpartaDex community not only benefits from the DeFi mechanisms, but also shares in the profits generated by the game itself, such as microtransactions and NFT claims. This blend of a Web 3.0 game with a fully functional decentralized exchange, referred to as Gamified DEX, is an innovative feature that makes SpartaDex a unique player in the DeFi ecosystem.

Governance & Token Utility

SpartaDex operates using its native token, SPARTA. Designed for optimum usability and low inflation, it forms the backbone of the platform's unique approach to a gamified decentralized exchange.

The key utilities of SPARTA tokens include:

• Single asset staking, enabling holders to earn real yield from SpartaDex revenues
• Participating in monthly votes for projects that are eligible to receive a pool of liquidity, boosting their APR in SPARTA tokens
• Purchasing Gems, the platform's premium currency

SpartaDex employs a unique governance system, in which SPARTA token holders who stake their assets can also vote on new liquidity pools that should receive APR rewards in SPARTA. This voting process occurs monthly.

Tokens used to vote for a winning pool are locked for three months, while tokens used for non-winning pools are instantly unlocked. These governance features, although not available presently, are expected to be incorporated in an upcoming SpartaDex update.

Tokenomics

As mentioned above, SpartaDex is a community-driven protocol and there was no public token sale. Exceptions include strategic partnerships, such as the one with DAO Maker, and a select Angel Round that accounts for just 2.5% of token distribution. These actions aren't solely about capital - they're also a crucial aspect of SpartaDex's branding, outreach strategy, protocol security, conducting audits, business contacts and partnerships.

SPARTA distribution:

• 50% - Ecosystem rewards (total 72m linear vesting with halving mechanism)
• 13% - Team (6m cliff + 18m linear vesting)
• 2% - Advisors (6m cliff + 18m linear vesting)
• 8% - DAO (locked)
• 7.5% - Development (24m linear vesting)
• 4.5% - Marketing (24m linear vesting)
• 2.5% - Angel Round (24m linear vesting)
• 1% - DAO maker sale (30% TGE + 24m linear vesting)
• 2.5% - Operational (24m linear vesting)
• 6% - Lockdrop (50%TGE + 6m linear vesting)
• 1% - Lockdrop (100% TGE)
• 2% - Airdrop (50% TGE + 3m linear vesting)

TGE - Token Generation Event

Anti-Inflation Mechanism

The SPARTA token has a number of mechanisms to ensure lower inflation:

• Burning ⅓ of the exchange's revenue
• Long vesting periods for each of the objectives
• Large distribution for LP stakers as ecosystem rewards, of which as much as 75% is locked in single asset staking

How SpartaDex Ensures Stable Liquidity

The protocol has several strategies to achieve stable liquidity:

• Boosting the launch with the Lockdrop campaign, which will bring significant liquidity
• Building a loyal community through gamification
• The level of the Senate depends on the value of the liquidity provided
• Surrender tax mechanism

SpartaDex’s Ambitious Road Map

The SpartaDex journey began in September 2022, with the project primarily focusing on conceptual and design work. This included the creation of game mechanics, an economic model, and laying the foundation for marketing strategies. SpartaDex has been progressively working towards its end goal since then: a fully functional, public version of the SpartaDex ecosystem.

2022

• September - The development phase of the SpartaDex began

2023

• February - The SpartaDex beta version was launched
• March - Deployment to the testnet took place
• April - September - During this period, SpartaDex focused on enhancing the platform with new functionalities and forming strategic partnerships
• July - SpartaDex officially launched on the mainnet
• Q4 - In this period, users can look forward to the upcoming multiplayer mode

2024

• Q1 - Release of the mobile game, indicating SpartaDex's ambition to increase accessibility and convenience for its users
• Q2 - SpartaDex plans to introduce the 'Perpetual DEX,' signifying a considerable expansion of exchange functionalities

SpartaDex Game

The way in which the DEX and SpartaDex’s gameplay are linked is quite complex, so I recommend you read about it in detail in their documents. It's worth knowing before you get into the game and invest any money.

Security

SpartaDex audit and security details can be found here.

Opportunity for Investment

SpartaDex presents a unique proposition by integrating gaming with DeFi, ensuring deeper liquidity and a dynamic user experience. The platform enables players to monetize their in-game achievements through tradable NFTs.

At SpartaDex, users have the chance to provide liquidity to various pools, capturing swap fees from the protocol. After generating an LP token, it can be staked to earn additional SPARTA rewards. The Dual Rewards system offers the possibility to earn additional incentives from diverse protocols that are collaborating with SpartaDex.

In addition, keep a close watch on the Spartapad. With numerous promising protocols launching, it provides an avenue to get involved early and secure tokens at discounted rates.